You're the filthy rich

[archerships]

Think you'd be happy if you were in the top 1% of income earners in the U.S.? Now consider this: from the world perspective, if you make more than $35,000/year, you're already in the top 1%. You're the filthy rich. Even the "working poor" in the U.S. (defined as families of four making less than $18 K/year) still make more than all but 9% of the world's population.

Read more about what it really means to be poor in Donald Sensings essay: Wealth and poverty in America and the world.

Comments

[gikiski.livejournal.com]

Jeebus! That is a serious shift in perspective.

Stupid comparisons.

[futuregirl.livejournal.com]

Apples and oranges, all the way. When you can live QUITE well in most southeast Asian countries for $10/day, this means nothing.

What money is traded for on the currency markets doesn't always have much to do with what cost of living is or the purchasing power of a currency unit in that country.

Purchasing power is a much bigger thing than just checking the exchange rates. If this was comparing purchasing power, it'd be a hell of a thing to find out. As it is, I just learned that it costs a lot to live in America. Someone making my salary in most non-western nations would be able to afford servants and such. I live in a third floor flat with two roommates.

What exactly is it supposed to prove, that technically our money is supposed to mean more than theirs?

Re: Stupid comparisons.

[vyus.livejournal.com]

Not necessarily stupid, altho if they are using exchange rates, then it certainly is misleading. But it looks like they're just using a curve based on info from another source, and I'm too lazy to go see how the World Bank came up with their average income numbers.

It's still probably very valid, even in terms of buying power. The poor in this country have a heck of a lot higher standard of living than most others.

Re: Stupid comparisons.

[contrariandoer.livejournal.com]

Totally agree. In US, the living cost and tax rate
is high. There are a lot of mandatory things you
have to pay like car insurance. After tax and
mandatory costs, you don't save much. In my
opinion, saving is what counts. From a financial
point of view, the saving rate is equivalent to
profit in a company's financial statement.

Re: Stupid comparisons.

[rachelmills.livejournal.com]

But it goes beyond currency comparison - its lifestyle comparison as well. Aside from the silly stat on where you rank on the world's wealth list, fact is, you have running water and other luxuries that most people in the world will never have.

And I totally agree with the statement that poverty in this world is caused more by (bad) politics than any other factor.

This from a girl who grew up in Haiti. I was a missionary kid, and fervently believe my parents were doing a very Good Thing (providing free health care) in Haiti. But in the larger picture it is an exercise in futility to treat symptoms and not the disease, which was bad politics. If all the missionaries down there and all the do-gooders up here would have put the same effort into the political system of Haiti as they did its citizens, the citizens would probably be better equipped right now to take care of themselves. The whole property rights thing can't be emphasized enough, and seeing property rights erode in this country scares me more than anything. When more and more you do NOT have a right to the property you create - your money, you have less incentive to create it. And the economy is not helped by that, people.

I just mention Haiti as an anecdotal example, but its not unique.

Re: Stupid comparisons.

[contrariandoer.livejournal.com]

Of course, it goes beyond currency comparison. As
a person with an investment mindset, I see saving,
life style, and health important to me, so my decision
is always to keep them in balance based on what I
have and the situation I am in.

The solution for poverty is education. Knowledge
is what gives people power to make right decisions
and generate wealth for themselves. Charities
and religious activities only serve people's need
to feel good about themselves but not the
practical economic needs, which is the most
important thing when one deals with the reality.

In my opinion, the cause of bad politics is
fear. People who are in power and not well-educated
are afraid of those with knowledge. They will
try to prevent people from obtaining good education
and be knowledgeable and powerful. I have seen
this in many countries and organizations around
the world.

Re: Stupid comparisons.

[rachelmills.livejournal.com]

You're right. Education doesn't hurt either. It is definitely an important building block. Bad governments can make education difficult for the reasons you described...

Re: Stupid comparisons.

[futuregirl.livejournal.com]

Sure, not everyone has it - but a shitload more than one percent of people do.

[crasch.livejournal.com]

You're right, strict monetary compasion probably isn't the best way to compare wealth. It would be better to compare how long someone has to work in order to get comparable goods (i.e. a dozen eggs might cost me 15 minutes of work, whereas it might cost someone in Thailand 45 min.) You would also want to compare things that can't be bought at any price (i.e. high speed internet probably can't be bought at any price in rural China).

However, would using better measures of comparison change the result? I don't know, but I would wager that by most any other measure of wealth, someone making $35 K/year in the U.S. would still end up in the top 1% in a worldwide comparison. How would you bet?

[visgoth.livejournal.com]

In recent years, I've summed it up by pointing out that a majority of people who are below the poverty line in the USA have microwave ovens.

yeah

[sarahshevett.livejournal.com]

Yeah and T V's.
And video games
and
and
and

[blueadept.livejournal.com]

Sensing referred to the work of a Peruvian economist. I actually picked up and skimmed (didn't buy) his book, The Mystery of Capital, and have to say that it made a lot of sense. The idea of enforceable property rights that bring the extralegal state of property into codified law, thus legitimizing all de-facto property, creates a start for a free-market economy.

amen.

[darwinx0r.livejournal.com]

A fucking men. If you have running water, three tvs and two cars and enough food to be fat, you are not poor.

=darwin

[sarah2624.livejournal.com]

Why is it knowing that my family is in the top 0.4% makes me feel guilty and not happy?

Enjoy the guilt

[bhv.livejournal.com]

You might like the book, "How to Enjoy Guilt Without Sex." It's got a great list of things that you might also enjoy feeling guilty about.